Rishi Sunak is said to be plotting a general election in autumn 2024 after offering the public a tax cut and a boost to the national living wage.
The prime minister’s allies have rejected speculation that he will be tempted into going early to the polls next spring to avoid another set of local election losses.
Mr Sunak and chancellor Jeremy Hunt are considering cutting the headline rate of income tax in the autumn statement – allowing it to come into force in April 2024, according to The Times.
A senior government source told the newspaper: “It’s all about people feeling that they have more money in their pocket by the time we get to the next election.”
The government is also reportedly considering hiking the living wage from £10.42 to £11.16 an hour in April 2024 in a bid to further brighten the mood before voters go to the polls.
The Independent understands autumn 2024 is under consideration for the next election, as the government hopes to give voters as much time as possible to feel an economic recovery is under way.
October and November are the months “provisionally circled” by Mr Sunak’s team to go to the polls, according to The Telegraph, giving more time for small boats legislation to take effect as well as economic measures.
Asked if the government was planning tax cuts, No 10 spokesperson said: “The prime minister has always been clear that it’s his aspiration to reduce the tax burden, but it’s obviously the case that we need to ensure economic stability.”
It comes as Labour continues its personal attacks on Rishi Sunak with an advert targeting his wife’s previous non-dom tax status, as it looks to shift the focus from law and order to the cost of living.
Sir Keir Starmer told his shadow cabinet that he makes “no apologies at all” for the controversial campaign, described by former Labour home secretary David Blunkett as “gutter politics”.
The latest social media ad, featuring a picture of Mr Sunak in the same style as the earlier ones, says: “Do you think it’s right to raise taxes for working people when your family benefitted from a tax loophole? Rishi Sunak does.”
It says the Conservatives “have raised taxes 24 times since 2019” while refusing to “close the non-dom tax loophole” for foreign residents in the UK.
The Independent revealed last year that Mr Sunak’s wife Akshata Murty held the special tax status, reportedly saving her millions. But she has since said she will pay UK taxes on all her worldwide income.
Lord Hayward, the Tory polling guru, also said it appeared that Labour had lashed out in fear over improving poll numbers for Sunak and the Tory party.
“They [Labour] are getting nervous and uneasy, and when people are uneasy they make missteps,” the Tory peer told The Independent. “This is a misstep. British people don’t like unpleasant, personalised attacks.”
A Tory source also hit back at the ads, calling them “the height of hypocrisy from a party which has already made £90bn of unfunded spending commitments and whose leader stands to benefit from a bespoke, tax-unregistered pension scheme unavailable to others”.
But shadow chancellor Rachel Reeves defended the controversial ads on Tuesday, saying: “I’m not going to make any apology for highlighting the dire record of this Conservative government and this Conservative prime minister.”
Shadow chief secretary to the Treasury Pat McFadden said “these are legitimate areas for public debate”. He declined to say whether any subject is off limits when challenged over the inclusion of the PM’s wife.
